AUSTIN, Texas--(BUSINESS WIRE)--Austin-based Cielo Property Group and TIER REIT, Inc. a Dallas-based real estate investment trust, have partnered to build a unique 349,000-square-foot office tower in downtown Austin featuring a strong connection to the outdoors by designing multiple outdoor decks overlooking Shoal Creek and also featuring several floors of flexible creative office space, unlike anything currently in the Austin market.
Cielo and TIER REIT plan to commence construction on the 28-story building at 208 Nueces St. in the southwest area of downtown at the beginning of 2016 and anticipate completion by the end of 2017.
“We’ve seen first-hand the extremely high demand for office space in downtown Austin and even with all the new construction there isn’t much space available,” said Cielo Founding Principal Bobby Dillard. “This building will offer a premier location in what is quickly becoming the heart of downtown with amazing views and plenty of amenities onsite and within easy walking distance — including the Whole Foods world headquarters, the new Trader Joe’s at Seaholm and dozens of restaurants and bars.”
“We are excited to partner with Cielo to develop Class A office space in the heart of downtown Austin,” said Scott Fordham, chief executive officer and president of TIER REIT. “Austin is one of our key target growth markets, and this rare development opportunity will expand our existing Austin portfolio that includes the Terrace Office Park, a four building complex with 620,000 square feet, located adjacent to the Barton Creek greenbelt.”
Designed by Gensler, the sleek glass tower is expected to feature 10 floors of traditional office space as well as three floors with 28’ high ceilings that will allow inter floor connectivity and loft-style work areas and flexible creative office space unique to downtown Austin high-rises.
Plans for ground floor retail include restaurant space overlooking Shoal Creek and retail and/or restaurant space at the corner of Third Street and Nueces. The tower will offer an above market ratio of vehicle parking spaces, and Cielo plans to encourage tenants to bike to work with a 300 stall secured bike parking facility with over sized locker rooms inside the building.
“This building will offer unbelievable access by bike to Central Austin given our close proximity to the Roy and Ann Butler Hike and Bike Trail, Shoal Creek Trail and Lance Armstrong Bikeway,” said Rob Gandy, also a founding principal of Cielo. “We want to do all we can to help people take advantage of that.”
The tower will reside on the 43,000-square-foot Austin Music Hall music venue location. Built in 2007, the facility faced financial challenges for several years before lenders repossessed it in 2012. Cielo purchased the building from Bank of the Ozarks last year, and carefully deliberated its future use.
Cielo will continue to own the Austin Music Hall brand and is actively searching for a smaller, higher quality music venue to open under the name.
More than $2 billion of development is already underway in the southwestern area of downtown including high-end condominium and office towers at the former Green Water Treatment Plant next door, where Google Inc. leased 200,000 square feet of office space earlier this year.
“This project has an unbeatable location in the center of an unprecedented wave of downtown redevelopment within easy walking distance of some of the city’s most popular and well-known destinations,” said Troy Holme, senior vice president of brokerage services for CBRE. “So many businesses are looking for downtown office space — particularly creative office space — and this building will be extremely attractive to those owners and their employees.”
About Cielo Property Group
Cielo Property Group is a commercial real estate investment and management firm that focuses on well-located properties with strong potential for value enhancement. Founded in 2010 by Bobby Dillard and Rob Gandy, Cielo has made 22 investments in assets totaling 1.4 million square feet across Texas in Austin, San Antonio and the Rio Grande Valley – including retail centers, office buildings and multifamily assets. The Cielo leadership team has collectively acquired and operated over 10.8 million square feet of commercial real estate, with a total project value of over $1.5 billion. For more information about Cielo Property Group and our approach to investing and management, please visit us at cielopropertygroup.com.
About TIER REIT, Inc.
TIER REIT, Inc. is a self-managed, Dallas, Texas-based real estate investment trust focused on maximizing total return to stockholders through the combination of stock appreciation and income derived from a sustainable distribution. TIER REIT’s investment strategy is to acquire, develop and operate a portfolio of best-in-class office properties in select U.S. markets that consistently lead the nation in population and office-using employment growth. For more information on TIER REIT, please visit www.tierreit.com or call 972.483.2400.
